Pakistan rupee gains against US dollar

Business Recorder reported that the rupee firmed slightly during Monday's inter-bank session, closing at 277.15 to the dollar, up Rs0.01. The interbank offer stood at Rs277.35. The local currency had finished the previous week at 277.16, which itself was a Rs0.09 gain over the 277.25 level recorded a week earlier.

Internationally, the greenback moved up toward a two-month high as tensions between the US and Iran kept crude prices climbing. The euro and sterling each slipped 0.1 per cent, while the dollar index stood at 101.15 and was on course for a 1.7 per cent gain in September. US President Donald Trump rejected an Iranian peace proposal aimed at settling the conflict and reopening the Strait of Hormuz, with Brent futures at $106 a barrel.

Open-market buying rates fell 5 paise to 278.17, while selling rates dropped 3 paise to 279.23. Against the euro, local currency strengthened, with buying and selling rates at 316.27 and 319.36. Attention now turns to US data this week, including the PCE index on Wednesday and non-farm payrolls on Friday, both expected to support further policy tightening. CME Group's FedWatch tool put the chance of a Fed rate hike at the late October meeting at 65 per cent.